| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Staples, Inc. > News item |
Staples trims term loan to $2.3 billion, splits into two tranches
By Sara Rosenberg
New York, April 8 – Staples Inc. downsized its first-lien term loan to $2.3 billion from $3.2 billion and restructured the debt to include a $300 million five-year tranche and a $2 billion seven-year tranche instead of being one seven-year loan, according to a market source.
Amortization on the term loan tranches is 1% per annum.
Price talk on the five-year loan is Libor plus 450 basis points with a 0% Libor floor and an original issue discount of 99, and talk on the seven-year loan is Libor plus 500 bps with a 0% Libor floor and a discount of 99, the source said.
When structured as one seven-year tranche, the loan was talked at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.
UBS Investment Bank, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are the arrangers on the deal, with UBS the left lead and administrative agent.
Proceeds will be used to help refinance existing debt, including $1 billion of bonds that are expected to be taken out at the make-whole provision under the existing indenture, and to finance a dividend payment.
Other funds for the transaction will come from $2,025,000,000 of secured notes, upsized from $750 million, $1 billion of unsecured notes, downsized from $1,375,000,000, and $77 million in ABL credit facilities borrowings.
Staples is a Framingham, Mass.-based business supplies distributor.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.